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How Can You Save for a House While You’re Still Renting?

In 2021, the homeownership rate in the United States was only 65.5%, which means that nearly half of Americans were either homeless or living on rent. The reality is that houses can be very expensive and not everyone can afford them. This is why owning a home can be very rewarding.

A lot of people believe that it’s cheaper to rent; however, renting doesn’t provide nearly as many benefits as homeownership does. Properties tend to increase in value over time, and owning them makes for a solid investment. Homeownership also provides you with the freedom to make changes to your house whenever you want. Plus, it improves stability. In other words, you won’t have to move to new places as much as when you’re renting.

Furthermore, despite all the down payments and appraisal fees, buying a house is still a lot cheaper in the long run than renting.

So, instead of paying rent, why not just turn it into a mortgage? If you’re interested, these five tips will help you save up for a house. Read on.

1. Pay your Debts

To ensure higher chances of getting approval for your desired home, make sure to pay off your debts. Creditors will most likely ask for your payslip and check your net income to see if you’re capable of paying the mortgage. With fewer debts and more income, creditors will be more than happy to accommodate you for a housing loan.

2. Open your Savings Account

Once you’ve made a decision to get a house, start opening a savings account. Take note that this account should only be used for your house fund. Don’t merge them with your other saving to avoid confusion. After that, resolve the amount of money you’re willing to deposit monthly into your account. Lastly, set a goal and make sure you have the right amount to make a down payment.

3. Cut off Some Expenses

As you’re slowly building your way into having your dream house, consider eliminating some unnecessary expenses. It could include things like fast food takeouts, movie nights, or extra gadgets you don’t need. To maximize your savings, learn to prioritize expenditures. It may take a lot of discipline but think of the future house you’ll be having with such sacrifice.

4. Build a Good Credit Card Standing

If you happen to have a credit card, maintain a good record. Doing this will help you during your housing loan. Avoid any credit card debt, as this will affect your overall credit standing. One of the ways to increase a good record is paying bills on time when using your credit card.

5. Look for an Extra Job

Many of us cannot accommodate too many expenses at once  — like saving for a house while renting. Not to mention other monthly bills like water, electricity, and food. With all the financial constraints, try looking for an extra job. Today’s trend is online, and there are many job opportunities that you can start with on a part-time basis. Search for a job that fits you and your time. Do a side hustle, earn extra income, and start saving for a house.


Saving money for a house while still paying for rent might be a big step to take. It comes with many considerations, especially on financial matters. It might be difficult, but it’s never impossible. You’ll need self-discipline and a strong determination to achieve your goal, and money will follow. Implementing the five house-saving tips in this article will move you one step closer to having the house of your dreams.

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